Life sciences venture capital firm Brandon Capital and health fund Australian Unity have co-led $9.5 million in Series A2 funding for cancer surgery medical device company OncoRes Medical.
Brandon Capital has invested from Australia and New Zealand investment collaboration Brandon BioCatalyst (formerly Medical Research Commercialisation Fund) which is primarily funded by the federal government. Australian Unity has invested from its Future of Healthcare Fund.
Alongside the equity investment, OncoRes also received a Projects grant of $3 million from the federal government-funded Cooperative Research Centres (CRC) program.
Perth-based OncoRes, has developed an innovative imaging system that can help surgeons more accurately identify and remove cancerous tissue, a process which currently relies on a surgeon’s vision and touch. The company is initially focusing the technology on breast cancer surgery.
The funding will support upcoming clinical trials of the Quantitative Micro-Elastography (QME) imaging system.
The financing round remains open for potential further investors to contribute towards the costs of proving the technology. Significant further funding is expected to be required to complete testing, regulatory processes and commercialisaton.
OncoRes chief executive Dr Katharine Giles said the technology had the potential to improve the removal of cancerous tissue when surgeons sought to conserve the breast in breast cancer surgery. Improving the removal of cancerous tissue would reduce the likelihood of further surgery being necessary.
“We believe that all women deserve the opportunity to move beyond their initial breast cancer surgery knowing that all of the cancer has been removed the first time,” she said.
“Continued support of our technology has helped us progress through the path from a university research project to a standalone company with [US] Food and Drug Administration breakthrough device designation. This continued support takes us closer to providing a game-changing solution for breast cancer surgeons.”
The hardware in OncoRes Medical’s QME Imaging System is a handheld probe that can be used during breast conserving cancer surgery to help surgeons more accurately identify and remove cancerous tissue. When the probe is applied to the area around a tumour, the system generates micro-scale maps indicating the stiffness of tissue which clearly differentiates cancerous from healthy tissue. This enables the surgeon to identify and remove residual cancerous tissue which might otherwise be missed.
Brandon Capital partner Dr Stephen Thompson said: “We are thrilled to continue to support OncoRes Medical as they advance the QME Imaging System and focus on improving outcomes for breast cancer patients. They are a great example of what the medtech industry in Australia can provide – not just in better health outcomes but local training, education and job creation in a high-value industry.”
Future of Healthcare fund manager Victor Windeyer said Australian Unity was proud to support the continued advancement of OncoRes “and the tangible impact it will have in supporting women’s wellbeing and peace of mind before and after surgery”.
OncoRes’ technology is based on early development carried out by oncology surgeon Christobel Saunders and researcher Brendan Kennedy at the University of Western Australia which was supported by the Western Australian Department of Health.
OncoRes was founded in 2016. Dr Giles, a medical practitioner before she moved into venture capital, was an investment manager with Brandon Capital when she was offered the leadership role with OncoRes in 2017.
Image: OncoRes chief commercial officer Simon Graindorge and chief executive Dr Katharine Giles.